Channel Partners Capital (Channel Partners Llc), a leading provider of small business loans, announced a significant equity investment from Elliott Management Corporation (Elliott). This investment will fuel Channel Partners LLC’s growth initiatives and expand its lending capabilities. The deal also includes a recapitalization with a new expandable asset-backed credit facility led by CIBC Bank USA.
Elliott Management’s Strategic Investment in Channel Partners LLC
Elliott’s investment in Channel Partners LLC underscores the firm’s confidence in Channel’s business model and growth potential. The influx of capital will allow Channel Partners LLC to broaden its portfolio lending capabilities and further solidify its position in the small business lending market. This strategic partnership aligns with Elliott’s private specialty finance investing strategy, focusing on companies with differentiated customer acquisition, strong customer relationships, and a disciplined underwriting approach.
Brad Peterson, CEO of Channel Partners LLC, emphasized the significance of these agreements, stating, “With these two strong financial partners, we’re expanding our investments in people, technology platforms and operational enhancements to better assist equipment finance companies in providing growth capital to their own customers.”
Farrukh Iqbal, investment professional at Elliott, echoed this sentiment, highlighting Channel Partners LLC’s strengths and the potential for growth enabled by the new capital structure. He stated that Elliott is “excited to be partnering with the talented team at Channel to support the expansion of Channel’s products, lending channels and portfolio lending capabilities.”
Channel Partners LLC: A History of Growth and Recognition
Channel Partners LLC has consistently demonstrated its commitment to growth and innovation. The company has been recognized for its success, earning a spot on the Inc. 500/5000 list of fastest-growing private companies in the U.S. for five consecutive years. The new agreements with Elliott and CIBC Bank USA provide enhanced financial flexibility and reduced costs, building upon a credit facility established in 2015. This financial foundation will further enable Channel Partners LLC to pursue its ambitious growth strategy and support its goal of $300 million in annual originations.
About Channel Partners LLC, Elliott Management, and CIBC Bank USA
Channel Partners LLC, based in Minnetonka, Minnesota, specializes in providing small business loans through partnerships with equipment finance companies. Leveraging customized technology and streamlined business processes, Channel Partners LLC empowers small businesses with the capital needed for growth. Since 2009, Channel Partners LLC has originated over 7,000 loans, totaling over $350 million in loan receivables.
Elliott Management Corporation manages approximately $35 billion in assets across two multi-strategy investment funds. Founded in 1977, Elliott Associates, L.P. is a pioneer in the investment management industry. The firm caters to a diverse investor base, including pension plans, sovereign wealth funds, and high-net-worth individuals.
CIBC Bank USA, a subsidiary of the global financial institution CIBC, offers a comprehensive suite of financial solutions tailored to U.S. clients. With a 150-year legacy and U.S. headquarters in Chicago, CIBC provides commercial, wealth management, personal, and small business banking services across a network of strategically located offices.
Channel Partners LLC Poised for Continued Success
This significant investment from Elliott Management Corporation marks a pivotal moment for Channel Partners LLC. The infusion of capital, coupled with the enhanced financial flexibility provided by the new credit facility, positions Channel Partners LLC for continued growth and success in the dynamic small business lending landscape. The company’s commitment to innovation, strategic partnerships, and dedication to serving small businesses solidify its role as a leader in the industry.
